A PROJECT REPORT ON TO STUDY THE PROBLEM OF NEW PRODUCT MARKETING IN PHARMACEUTICALS INDUSTRY AT CIPLA LTD BY SUBMITTED BY VIVEK V ALAI TO UNIVERSITY OF PUNE, PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THEDEGREE OF MASTER BUSINESS ADMINISTRATION DR B.V. HIRAY INSTITUTE OF MANAGEMENT & RESEARCH MALEGAON (2012-13)
Chapter no. Topic Page no. I Introduction of project Introduction of the topic Selection of the topic Scope of study Limitation of study II Research methodology Definition Data collection on Objective of study Hypothesis of study Review of literature III Company profile IV Theory of literature V Data analysis, interpretation,& presentation VI Observation & findings VII Conclusion & suggestions VIII Bibliography & webliography IX Annexure
I. Introduction of project
i. Introduction of topic OVERVIEW OF PHARMACEUTICAL SECTOR: Accounting for two percent of the worlds pharmaceutical market, the Indian pharmaceutical sector has an estimated market value of about US $8 billion. Its at 4th rank in terms of total pharmaceutical production and 13th in terms of value. It is growing at an average rate of 7.2 % and is expected to grow to US $ 12 billion by 2010. Over the last two years the pharmaceutical market value has increased to about US $ 355 million because of the launch of new products. According to an estimate, 3900 new generic products have been launched in the past two years. These have been by and large launched by big brands in the pharma sector. And in the year 2005 Indian pharmaceutical companies captured around 70% of the domestic market. As in the present scenario, only a few people can afford costly drugs, which have increased price sensitivity in the pharmaceutical market. Now the companies are trying to capture the market by introducing high quality and low price medicines and drugs. With the Product Patent Act, which came into action in January 2005, this industry is able to attract big MNCs to India. Earlier these big firms had apprehensions in launching new drugs in the Indian market. At present, a large number of Indian pharmaceuticals companies are looking for tie-ups with foreign firms for in-license drugs. GlaxoSmithKline is among the top choices for the firms that wish to launch their product in India, but do not have any branch over here. Contract research and pharmaceutical outsourcing are the new avenues in the pharmaceutical market. Contract manufacturing is growing at a very fast pace and is estimated to grow to US $30billion, whereas contract research is estimated to reach US$6-10 billion. Indian multinational companies like Dr.Reddys Lab, Cipla, Ranbaxy, etc have created awareness about the Indian market prospects in the international pharmaceutical market. Approvals given by Foods and Drugs Administration (FDA) and ANDA (Abbreviated New Drug Application)/DMF (Drug Master File) have played an important role in making India a cost effective and high quality product manufacturer. Furthermore, the changes that took place in the patent law,
change of process patent to product patent, have helped in reducing the risk of loss for intellectual property. ii. Scope of study Scope of Study The research helps in dealing with consumers. Future researches nay use it as a secondary source of data. It provides very useful information about usage behaviors of the cipla respiratory new product brand. The research report could be further used by me in future for advanced research on the topic. Limitation The area covered by me was very very small that is only Dehradun. Consumers were not aware about the entire new products of Sanofi-Aventis Pharmaceuticals. There were not enough parameters or the study material available for the interpretation of the result so as to reach to a final conclusion.
II. Research methodology
SWOT OF SANOFI -AVENTISSTRENGTH: Good market position of blockbuster drugs. Good Indian culture/backgroundWEAKNESS: Relative small market share (5 %) compared to Pfizer(10.9%) Same infrastructure in many countries.OPPURTUNITY: Good Market Power. Economies of scale/ R&D Synergies in administration. Many developments cannot be financed without merger.THREATS: Diseconomies of scale due to the broader organization andComplicated communications.